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227 W. JEFFERSON BOULEVARD <br />SUITE 1400 S. <br />SOUTH BEND, IN 46601 -1830 <br />CITY OF SOUTH BEND PETE BUTTIGIEG, MAYOR <br />COMMUNITY INVESTMENT <br />SCOTT FORD, EXECUTIVE DIRECTOR <br />June 30, 2015 <br />Mr. Tim Scott, President <br />South Bend Common Council <br />41h Floor County -City Building <br />South Bend, IN 46601 <br />RE: Eddy Street Commons Bond Refunding <br />Dear President Scott: <br />PHONE: 574/235.9371 <br />FAX: 574/235-9021 <br />Attached for the Common Council's consideration is a Resolution to approve an <br />addendum to the Original Lease between the Redevelopment Authority and Redevelopment <br />Commission for the 2008 Eddy Street Commons Project Bonds, which financed the City's local <br />public improvements for the Eddy Street Commons project, including the parking garage, <br />reconstruction of certain streets and alleys, utility upgrades, etc. <br />Pursuing a refunding of the 2008 Eddy Street Bonds under current rates anticipates an <br />approximate savings of $3,000,000 over the 18 year life of the bonds. The estimated bond <br />refinance rate is anticipated at 3.34 %. <br />The Bonds current interest rate is 5.796 %. The bond refunding will only occur if a savings of at <br />least $1,000,000 dollars can be achieved. Current interest rates would have to increase 70 basis <br />points between now and the expected closing the end of August to cancel the proposed bond <br />refunding. <br />The Redevelopment Commission approved the bond refunding with Resolution No. 3298, the <br />Redevelopment Authority approved the bond refunding with Resolution No. 195. Council <br />approval of this Resolution will allow the issuance, sale, and delivery of the Refunding Bonds, a <br />Supplemental Trust Agreement with US Bank, and other necessary documents upon advice of <br />legal counsel that will be necessary for the bond refunding. <br />Thank u� / I <br />Brock Zeeb <br />Director of Economic Resources <br />Department of Community Investment <br />City of South Bend. <br />PLANNING NEICHRORHOOD ENGAGEMENT BUSINESS DEVELOPMENT <br />JITIN KAIN PAMELA C. MEYER CHRIS FIELDING <br />Filed In €�'. `+e ('s Off!CQ <br />".11 I" 12015 <br />JOHas ye ;i'if <br />CITY CLERK, 60i —t" i _3IEND, IN <br />ECONOMIC RESOURCES <br />BROCK ZEES <br />N <br />